In good news for South Africans, petrol, diesel, and paraffin prices are expected to fall in May 2025. After months of rising fuel costs, recent estimates suggest that there will be some relief for drivers, transport companies, and households. The forecast is based on early market data from mid-April 2025, bringing hope to many who have been struggling with high expenses.
Although the final confirmation will come at the end of April, early signs already point towards lower prices. The shift is due to changes both within South Africa and internationally. A stronger rand and falling oil prices globally are making this possible.
With living costs already very high, even a small drop in fuel prices can make a real difference for daily life. Lower fuel costs can help individuals save money and could also bring down the cost of goods and services. Here’s a closer look at what’s happening.
Why Are Fuel Prices Likely to Decrease?
Several important reasons are behind the expected fuel price cut for May 2025. These changes have been building up slowly over the last few weeks:
- Stronger South African Rand:
In early April, the rand was weak, trading at about R19.93 against the US dollar. This made importing fuel more expensive. However, by mid-April, the rand improved and was trading around R18.06. A stronger rand helps make imported fuel cheaper, which leads to lower prices at the pump. - Global Oil Prices Have Fallen:
Another key factor is the fall in international oil prices. Brent crude oil dropped to about $69 per barrel, which is 13% lower compared to earlier in April. The drop happened because countries like the US and China are using less oil, and OPEC+ countries have increased oil production. More supply and less demand naturally push prices down.
Expected Inland Fuel Prices for May 2025
The Central Energy Fund (CEF) released early forecasts showing that inland fuel users could enjoy lower prices. Even though each litre is only a few cents cheaper, the savings add up quickly for daily and large users.
Coastal Fuel Prices Expected to Fall Too
People living near the coast usually enjoy slightly cheaper fuel due to lower transport costs. This drop is a welcome change for coastal drivers and families relying on fuel for cooking and heating.
How Will This Affect Everyday Life?
Lower fuel prices can make a real difference in people’s lives. Even small savings add up, especially over time. Here’s how it could impact daily spending:
- Filling a 50-litre petrol tank will cost about R7 to R9 less.
- Transporters with 500-litre diesel tanks could save around R190 to R195 per fill-up.
- Families using 50 litres of paraffin for cooking or heating could save about R15.50.
Lower fuel costs can also reduce the cost of moving goods, meaning possible drops in food and product prices